SME Growth: where next?
18th August 2020As UK GDP growth for the first two quarters of 2020 turns negative, COVID-19 has officially tipped us back into recession. As expected. SME’s were already struggling to find growth, mainly due to Brexit, so business owners will now be wondering what their own growth will look like:
The answer is complicated. Some businesses have not only survived during lock down, due to demand for their products or services being resilient and/or production being adaptable to safe working practices, but they have actually thrived. Most, however, are expecting some form of contraction. What we should all remember is that this is a different type of recession, caused by an exceptional event. It is not the usual recession caused by ongoing fundamental weaknesses in our economy. Accordingly, if we remain confident, and do not decide to sit on our discretionary spends and business development plans, we should bounce back fairly quickly. In fact, if we embrace some of the modern working practices forced upon us recently, and continue to weed out non essential costs, we may even emerge in better shape than we went in.
Blog entry by: Ian Piper
Disclaimer - All information in this post was correct at time of writing.
